The business environment is changing after the COVID-19 pandemic. Attitudes toward “traditional” business practices are shifting. Furthermore, women play a significant role in shaping the future of business. Let’s look at the history that has led to the current landscape.

History of women in business

Many people are unaware that the history of female business entrepreneurs dates back thousands of years. The first well-documented businesswomen can be traced back to 1870 BC to the northern Iraqi city of Assur. Assyrian women at the time frequently contributed to the region’s vast trading networks, demonstrating that business was not limited to men.

In 1973, for example, Katharine Graham was the only female CEO of a Fortune 500 company. Women made up only 38% of the workforce in the United States at the time. In 2019, that figure had risen to 46.2%, with 37 Fortune 500 companies led by a female CEO.

 

Current business state for women

There have been some positive changes in the last few decades for women. But what does the current situation portend for the future? We’ve selected some statistics, positives and challenges that may shape the coming decades.

 

Women statistics in business

How well are women represented in the business world? And how many businesses are owned by female business entrepreneurs? As one might expect, there have been numerous studies into such issues. Here are some notable statistics about women in business:

 

Ownership of a business

  • Only one in every three UK entrepreneurs is female. This gender disparity is equivalent to 1.1 million lost businesses. The source is HM Treasury, Rose Review of Female Entrepreneurship, 2019.
  • In 2017, only 5.6% of UK women ran their own businesses, compared to 15% of Canadian women, nearly 11% of US women, and more than 9% of women in Australia and the Netherlands, according to HM Treasury 2019.
  • In the United States, the proportion of women-owned businesses has risen from 4.6% in 1972 to 42% in 2019, according to American Express 2019 State of Women-Owned Business Report.

Representation

  • Women make up only 13% of the most senior staff members on venture capital and private equity investment teams. (2019, HM Treasury)
  • Women currently hold only 5% of leadership positions in the UK technology sector. (PwC UK, 2017)

Funding

  • All-female teams receive less than 1% of all venture funding in the UK, according to Illuminate Ventures 2018.
  • Businesses with all-female founders receive less than 1p for every £1 of venture capital investment in the UK. While mixed-gender founding teams receive 10p and all-male founders receive 89p (Illuminate Ventures, 2018).

The gender pay disparity

  • In the United Kingdom, the overall gender pay gap is 15.5%, according to Office for National Statistics 2020. 
  • The overall gender pay gap in the United States is around 19%, according to the 2020 PayScale.
  • According to Office for National Statistics 2020, the gap among full-time employees in the UK fell to 7.4% in 2020 from 9.0% in 2019.

Women influence the market-

Women make the following purchases in family purchases involving two adults (a woman and a man):

  • 94% of home furnishings purchase decisions
  • 92% of family vacation purchases decision
  • 91% of purchase decisions of the house
  • 80% of healthcare purchase decisions
  • 60% of family car purchases decision
  • 51% of consumer electronics purchases decision

In many cases, women are not only influencing the market; they are the market.

The difficulties that women in business still face

So, what is currently impeding greater gender equality in the business world? The gender gap goes beyond pay, as evidenced by statistics. We’ve identified some of the current impediments to greater equality and rights. 

 

Female entrepreneurs face funding challenges

One of the most concerning aspects of women in business is the frequent lack of funding. According to a source, all-female teams receive less than 1% of all UK venture funding, while mixed-gender teams receive 10%.

 

Underrepresentation in senior positions

Another significant challenge for women in business is representation in positions of authority. Women held 29% of senior management positions globally in 2020. Despite being the highest number ever recorded, it is still far from equal.

 

Confidence level

Several issues frequently arise when you delve deeper into why women might not pursue a career in a traditionally male-dominated field. Self-assurance and self-belief are two major things.

Women are often less likely than men to self-promote or advocate for themselves at work, owing to apprehension about receiving a negative response. The study discovers that this is true even when there is no difference in ability between men and women.

Shaping the future of business

Introducing new ideas

As women gain more power and influence in business, they bring new ideas and innovation. Greater gender equality promotes the development of new products and services.

 

Introducing a novel approach to leadership

Although women’s representation in leadership roles remains a problem, it has improved in recent years. Furthermore, women in these positions bring a distinct set of skills and competencies that can aid in change.

 

Contributing to diversity and inclusion

Inclusion and diversity are still major issues in the business world. However, as more women enter and advance in the corporate world, there will be more representation. As a result, the more inspirational role models there are in business, the more appealing the industry becomes to others.